55% of SMEs refused credit by banks

MORE than half of loan and overdraft requests from small and medium size businesses (SMEs) have been refused by the banking sector in Ireland over the past three months.

ISME, which represents small firms in Ireland, said their latest Bank Watch survey offers clear evidence that banks “shut up shop” over the period.

It found 55% of businesses were refused funding over the three months to the end of February while claiming that the raft of business closures and job losses over the period were “directly linked to lack of credit”.